How and when will schools move to the Quality Schools funding arrangements?

Download fact sheet: How and when will schools move to the Quality Schools funding arrangements

By 2029 all schools will have transitioned to their Quality Schools funding levels

Over 2018 to 2029, all schools will move to being funded at consistent Commonwealth shares of the Schooling Resource Standard (SRS).

In line with state and territory governments having full constitutional responsibility for schools, the Australian Government will fund:

  • 20 per cent of the total SRS for government systems, reflecting its role as the minority public funder of government schools
  • 80 per cent of the total SRS for non-government schools and systems, reflecting its role as the majority public funder of this sector.

The majority of schools and systems will receive increases in their Australian Government per student funding

Most schools currently are funded below their target Commonwealth share of the SRS. Schools currently receiving less than the target Commonwealth share will transition more quickly to the new share by 2023.

A small number of schools will have their recurrent funding reduced

A small number of non-government schools are expected to have their recurrent funding reduced. This is as a result of the transition to consistent shares of the SRS and the use from 2020 of a Direct Measure of Income to calculate capacity of a non-government school community to contribute to the costs of schooling.

These non-government schools have historically received more funding than similar schools with students with the same level of need. Under previous arrangements, even the most overfunded of schools were guaranteed to receive three per cent growth in funding each and every year, regardless of need. Many of these schools would have remained overfunded for decades – more than 150 years in the worst case.

The funding reduction will occur in a manageable way with a gradual transition over time to the Quality Schools arrangements.

Additional Commonwealth funding will ease the transition

The Australian Government is providing additional funding and support to ensure a smooth transition to the new arrangements. This included $243.6 million in interim additional financial assistance over 2018 and 2019 for non-government schools while the Direct Measure of Income of capacity to contribute, to be introduced from 2020, was developed.

To complement the needs-based recurrent funding arrangements, the Government is introducing a new Choice and Affordability Fund (The Fund) in 2020. The Fund will provide the non-government sector with a flexible means of driving other government priorities, including supporting parental choice and affordability and assisting schools in regional and remote areas and in drought affected areas.

The Australian Government is also providing $46.1 million over 2018 to 2023 for Australian Capital Territory non-government schools to assist transition to the new arrangements, $78.5 million over 2018 to 2027 for government schools in the Northern Territory to accelerate evidence-based reforms to improve student outcomes and $20 million 2018 to 2027 to support literacy programs in Tasmania.